N.M. Officials Say Medicaid Reimbursement Cuts Will Help Shrink Shortfall

The expected payment reductions to hospitals, physicians and other health providers -- as well as accounting changes -- will get the budget gap down to $24 million, state officials said. Also, Medicaid advocates in Iowa are urging vigilance on the efforts of the new private managed care plans in that state.

New Mexico officials are predicting they can shrink a state budget shortfall for Medicaid health care to $24 million if proposals go forward to reduce reimbursement rates to hospitals and physicians along with other accounting measures. (Lee, 5/9)

Medicaid managed by corporations has failed in two states, leaving advocates for the poor and disabled to warn Iowa: Don’t get hooked by flashy promises, unverifiable data and staunch ideologies. Their advice surrounding Iowa’s new Medicaid management system is for public and state officials to aggressively monitor results, insist on transparency and don’t be afraid to fire the for-profit networks if standards aren’t met. (Clayworth, 5/9)

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